EU Deforestation Regulation & Lotteries

Navigating the EU Deforestation Regulation: Insights for the Lottery Sector
In a webinar hosted by the European Lottery Association (EL) Environmental Initiative, members of the lottery sector came together to delve into a pressing sustainability topic: the European Union Deforestation Regulation (EUDR). With the EUDR’s requirements set to impact how companies source and market products—particularly those derived from forest resources—this session clarified what the new rules mean for lotteries and their suppliers.

The webinar featured two key presentations. First, Melissa Jacquerioz from the EL provided an update on the EL Environmental Initiative and its latest commitments. Then, Stefania Colombo from IGT shared in-depth knowledge of the EUDR, translating complex regulatory demands into actionable guidance. Together, they highlighted the urgent need for lotteries to understand the EUDR’s implications, adopt responsible sourcing, and comply with evolving European sustainability standards.

EL Environmental Initiative: Setting a Strong Sustainability Baseline
Before diving into EUDR specifics, Melissa updated participants on the EL Environmental Initiative. Established two years ago, this initiative sets out concrete commitments that EL members are encouraged to adopt:

Use of Certified Sustainable Paper:
Nearly 80% of EL members use paper from sustainably managed forests, reflecting the sector’s substantial progress toward more responsible scratch cards and printed products.

Measuring & Reducing Greenhouse Gas Emissions:
Over half of EL members regularly monitor their carbon footprint. This measurement stage has evolved into a new commitment: setting reduction targets and disclosing action plans publicly, moving from understanding emissions to actively cutting them.

A Tailored Support Program for Lotteries:
Recognising that not all members have the internal resources or know-how to meet these targets, the EL support program is available—at no cost—to help lotteries fulfil their environmental commitments. This includes e-learning modules, self-assessment tools aligned with updated EL Sustainability Guidelines, and practical carbon measurement tools. The goal is to ensure that all lotteries, regardless of size or starting point, can confidently progress on their sustainability journeys.

European Union Deforestation Regulation: What It Is and Why It Matters
Stefania Colombo’s session focused on the EUDR, a robust EU regulation to ensure that products sold in the European market are “deforestation-free.” This new law takes effect at the end of 2025 and directly impacts companies that produce, distribute, or sell products derived from commodities like wood, paper, cocoa, palm oil, and other raw materials linked to forest ecosystems.

Key Takeaways on EUDR:

Direct Applicability & Scope:
Unlike EU directives that must be transposed into national laws, the EUDR applies directly in all EU countries. It covers a range of commodities, including wood and its derivatives—such as the paper essential for lottery tickets, play slips, and receipts.

Deforestation-Free & Legal Production:
Products placed on the EU market must not only be free from contributing to deforestation or forest degradation but also comply with all relevant legislation of their country of origin.

Operators vs. Traders:
The EUDR distinguishes between “operators” (who first place commodities on the market) and “traders” (who make them available to end consumers). For lotteries, this might mean that while suppliers (operators) must conduct due diligence, lotteries themselves (as traders) must ensure they receive compliant products. Moreover, lotteries that directly source paper or printed products from suppliers outside the EU may find themselves categorized as operators and thus subject to more stringent checks.

Due Diligence and Traceability:
Companies must gather detailed supply chain information—ranging from supplier names to geolocation of the forest source—and assess risks of deforestation or illegal production. If risks are identified, they must implement mitigation measures, such as seeking additional documentation or working closely with suppliers to improve their sourcing practices.

FSC Certification as a Helpful Tool:
Because the EUDR focuses on deforestation-free origin and compliance with local laws, working with FSC-certified (Forest Stewardship Council) paper can streamline the process. FSC standards are closely aligned with EUDR objectives, covering both environmental protections and social considerations for indigenous populations. Choosing FSC-certified paper can simplify due diligence and reduce the administrative burden.

Practical Steps for Lotteries
For lotteries wondering where to begin, the first step is understanding their own supply chains. Identify which products contain virgin paper or other forest-linked commodities. Then, engage suppliers to confirm their sourcing credentials. Incorporating EUDR clauses into supplier agreements and preparing standard information requests can help ensure smooth compliance. Over time, early preparation will minimize complexity and potential non-compliance penalties.

Synergies With Other Sustainability Efforts
As highlighted during the session, EUDR compliance isn’t an isolated task. It complements other sustainability initiatives, such as the EL Environmental Commitments and the Corporate Sustainability Reporting Directive (CSRD). By aligning environmental data collection, supplier engagement, and risk assessments across frameworks, lotteries can create cohesive, efficient sustainability strategies that build brand trust and future-proof their operations.

Looking Ahead: A Sector-Wide Opportunity
As the December 2025 EUDR application date approaches, the lottery sector has a unique opportunity to demonstrate leadership in sustainable sourcing. By collaborating through the EL Environmental Initiative, sharing best practices, and taking advantage of supportive tools like the carbon footprinting platform and e-learning modules, lotteries can not only comply with EUDR but also improve their overall sustainability performance.

This webinar underscored the importance of early action, knowledge-sharing, and coordinated efforts. By working hand-in-hand with suppliers and leveraging industry support, lotteries can turn regulatory compliance into a catalyst for positive environmental change, strengthening both their reputations and their long-term resilience.

Get Involved
If your lottery hasn’t yet committed to the EL Environmental Initiative or begun preparing for EUDR compliance, now’s the time. Review your paper sourcing, reach out to the EL support program for guidance, and start mapping your supply chain. Together, the lottery sector can ensure a more sustainable future for its players, partners, and the planet.

To access the full video recording or the presentation, make sure your lottery has signed up to the EL Environmental Initiative and contact hello@digitalrg.com